Taxes Made Easy
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you're stuck paying the amount you are told to pay. However, this is simply not the case.
While the tax code is rigid and there are a lot of rules to follow, the truth is that many people don't take the time to learn how the rules work and how they can work to their advantage.
Often, there are rules that can help to lower your annual gross income so that you're not only
lessening your taxes, but also getting a larger return for that vacation you've always wanted to take.
First of all, what you need to realize is that there are two different kinds of deductions that are listed in tax law deductions and tax credits.
Deductions are those costs that are subtracted from your gross income on the front side of a tax form before anything else is taken off. These help to lower your tax bracket first along with the standardized deductions that everyone has on their forms.
Tax credits are those deductions that come directly off of the amount you are to be taxed.
Obviously, these are much more significant and will help to dramatically lower your owed taxes. When you look at a basic 1040 form, which the usual form that most individuals use, you will notice that on the front of the form, you can take deductions for the following:
That is, those people who are dependent on you. You get a tax break for them. This is generally going to be one or two if you don't have any children (single or married correspond with one and two).
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